Key points of investment:
Net profit without return to mother maintained rapid growth in the first half of the year.
24H1: The company achieved operating income of 1.928 billion yuan, a year-on-year increase of 17.52%, achieved net profit of 0.312 billion yuan, an increase of 10.85% over the previous year, and achieved net profit without deduction of 0.309 billion yuan, an increase of 38.32% over the previous year.
24Q2: The company achieved operating income of 0.973 billion yuan, a year-on-year increase of 20.43%, achieved net profit of 0.114 billion yuan, an increase of 21.84% over the previous year, and achieved net profit without deduction of 0.115 billion yuan, an increase of 42.99% over the previous year.
24H1: Revenue from hemorrhoid treatment products was 0.875 billion, up 22.02% year on year; Big Health revenue increased 33.27% year on year; medical service revenue decreased 7.61% year on year; pharmaceutical commercial revenue increased 17.01% year on year.
Pharmaceutical industry: Hemorrhoid treatment products have performed well, and Big Health is expected to become the second growth point.
The anorectal segment is centered around Ma Yinglong's musk hemorrhoid cream and musk hemorrhoid suppository. In 24, H1 deepened pharmaceutical channel marketing reforms, strengthened retail channel terminal marketing, established a broad range of new channels, and deepened the potential of the third- and fourth-tier markets, and terminal output increased significantly. Revenue from hemorrhoid treatment products increased by 22.02% year over year.
Big Health conforms to the trend of domestic products, increases the cultivation of key healthy varieties, and invigorates content marketing. In the anorectal field in '23, we developed and launched a series of wet wipe products such as Xiaolan wet toilet paper and big white sanitary wipes. In the field of ophthalmology, Ma Yinglong has innovatively developed two core formulations for removing eye bags and removing wrinkles and anti-aging, and expanding the Ma Yinglong Babao series of eye creams. In H1 in '24, the sales scale of representative products such as eye care products and hygiene wipes series products represented by the Babao Eye Cream series grew rapidly, driving the overall scale growth of Big Health.
Service and commerce: An important fulcrum in building Ma Yinglong's entire anorectal industry chain.
Medical services: 1. Ma Yinglong Anorectal Chain Hospital covers Wuhan, Beijing, Xi'an and Datong.
2. Accelerate the layout and joint construction of anorectal diagnosis and treatment centers. Since the beginning of the year, 9 new anorectal diagnosis and treatment centers have been signed, bringing the total number of signatories to 89. 3. Build a mobile health cloud platform “Pony Healthcare”. Pharmaceutical business: Pharmaceutical retail and pharmaceutical wholesale go hand in hand. In terms of retail, the PB product line is rich, and the steady increase in the proportion of PB products in the scale has led to overall revenue growth in the pharmaceutical retail business. In terms of logistics, optimize supply chain construction to further enrich variety resources; adjust the downstream customer structure, increase the number and scale of products supplied, and drive overall performance improvement.
Profit forecasting and investment advice
Due to the rapid growth rate of hemorrhoid treatment and health products in the first half of the year, we raised our 24/25/26 revenue forecast from 3.57/4.05/4.51 billion yuan to 3.72/4.17/4.65 billion yuan, with a growth rate of 19%/12%/11%; and raised the 24/25/26 net profit from 0.56/0.65/0.74 billion yuan to 0.6/0.68/0.78 billion yuan, maintaining the “buy” rating.
Risk warning: risk of product sales and promotion falling short of expectations; risk of increased industry competition; risk of product price fluctuations; risk of rising costs.